Abu Dhabi is revving up its efforts to become a global financial hub by offering a unique set of incentives to hedge funds. Officials are discreetly putting together a package of perks aimed at making the emirate a more attractive destination for these high-powered investment firms.
Beyond the well-known tax benefits and strategic location that already make Abu Dhabi appealing, the new strategy focuses on enhancing the lifestyle for hedge fund managers and their families. This includes expediting the notoriously long waitlists for memberships at prestigious country clubs. For many financiers, access to these exclusive social and recreational facilities is a major consideration when choosing a place to live and work.
Abu Dhabi Global Market (ADGM), the emirate's financial free zone, is experiencing a surge in popularity. The number of registered businesses at ADGM jumped 30% in 2022, making it the fastest-growing financial center in the region for the second consecutive year. Hedge fund giant Brevan Howard already manages a significant portion of its assets, roughly $100 billion, from Abu Dhabi – more than either London or New York. Other big names like Goldman Sachs, Rothschild, and Morgan Stanley also have offices in the emirate.
Abu Dhabi officials believe that by catering to the personal needs of hedge fund managers, they can further accelerate this growth. The new package of incentives extends beyond the golf course. Officials are also looking at ways to streamline the process of obtaining visas and permits for both the managers themselves and their families. Securing coveted spots in schools for their children is another area being addressed.
This focus on lifestyle reflects a broader recognition by Abu Dhabi that financial success is not solely driven by regulations and tax rates. By creating a welcoming and comfortable environment for financiers and their families, the emirate hopes to solidify its position as a major player in the global financial landscape.
The competition for hedge fund business is fierce, with established centers like London, New York, and Singapore offering their own set of advantages. However, Abu Dhabi's unique blend of tax benefits, geographic location, and its commitment to a luxurious lifestyle proposition could prove to be a tempting combination for these investment firms. The success of this new initiative will likely be judged by the number of prominent hedge funds choosing to set up shop, or expand their existing presence, in Abu Dhabi.